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Dubai's Drydocks to present $2.2 bln debt plan next week
March 1, 2012 / 6:16 AM / 6 years ago

Dubai's Drydocks to present $2.2 bln debt plan next week

DUBAI, March 1 (Reuters) - Drydocks World, a unit of Dubai World that is restructuring a $2.2 billion loan facility, will present terms of the proposal to lenders on March 8, the shipping firm said on Thursday.

Drydocks now hopes to complete the restructuring by July, its Chairman Khamis Juma Buamim said in an email statement. He had earlier said the deal would be completed by March.

“With the support of its wider stakeholders, significant progress has been made over recent months in all aspects of the restructuring,” Buamim said.

The syndicated facility, taken out to finance acquisitions in October 2008, comprised a $1.7 billion three-year loan paying 170 basis points and a five-year $500 million loan with a 190 basis points margin, according to Thomson Reuters data.

Buamim said in December that the company looks to extend debt repayment for between five to eight years, which would be similar to the time frame reached by parent Dubai World in its $26 billion debt restructuring deal with creditors in 2011.

The shipbuilding unit of Dubai World is not regarded as a strategic asset by Dubai, meaning it has had to negotiate its own debt solution without the support of the government.

It is eyeing joint ventures for its southeast Asia business, which could be sold off later to prospective partners if they proved to be successful. (Reporting by Praveen Menon; Editing by Dinesh Nair)

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